Funding Opportunities for Women Entrepreneurs in India 2027: Schemes, Sectors, and How to Apply

Last updated: 1st November 2026 · By Vandita Tiwari, Direct2Mentor

Women entrepreneurs in India have access to government and bank-backed schemes that support new businesses, startups, and MSMEs. These schemes provide loans, subsidies, and guarantees, and in 2027 they increasingly help women find customers too.

Several schemes have changed since our 2025 guide. Stand-Up India’s original term ended in March 2025, Mudra loans now go up to ₹20 lakh, and some older schemes are no longer widely available. This guide lists what is available now and what to check before you apply.

What Has Changed Since 2025

Mudra loans go up to ₹20 lakh. A new Tarun Plus category was added in October 2024 for borrowers who have repaid a Tarun loan.
Stand-Up India is being revamped. The original scheme was valid up to 31 March 2025. In March 2026 the Finance Minister announced a revamped version, with the loan limit expected to rise from ₹1 crore to ₹2 crore. Check its latest status on the official portal before applying.
A new term loan scheme was announced in Budget 2025-26 for 5 lakh first-time women, SC, and ST entrepreneurs, with term loans of up to ₹2 crore over five years.
Budget 2026-27 announced SHE-Marts, community-owned retail outlets for women entrepreneurs, building on the Lakhpati Didi programme.
Some older schemes have been removed from this guide (see the note at the end).

Funding Schemes for Women Entrepreneurs in India: 2027 Guide

Scheme	What it offers	Who it suits	Where to apply
PM Mudra Yojana (Shishu, Kishor, Tarun, Tarun Plus)	Collateral-free loans up to ₹20 lakh: Shishu up to ₹50,000, Kishor up to ₹5 lakh, Tarun up to ₹10 lakh, Tarun Plus ₹10 to ₹20 lakh (for borrowers who have repaid a Tarun loan)	Non-farm micro and small businesses: retail, beauty, tailoring, handicrafts, food processing, services	Banks, NBFCs, and microfinance institutions; online at udyamimitra.in or jansamarth.in
Stand-Up India	Bank loan of ₹10 lakh to ₹1 crore for a new (greenfield) business. A revamped version with a higher limit was announced in March 2026	Women and SC/ST entrepreneurs aged 18+ starting a first-time venture in manufacturing, services, trading, or allied agriculture; at least 51% ownership for companies and partnerships	standupmitra.in, jansamarth.in, or a bank branch. Check the current status first
PMEGP	Credit-linked subsidy of 25% (urban) or 35% (rural) of project cost for women; women contribute 5% of the project cost	New micro-enterprises; project cost up to ₹50 lakh in manufacturing and ₹20 lakh in services	Online at kviconline.gov.in/pmegpeportal
CGTMSE credit guarantee	Government-backed guarantee that lets banks lend without collateral; women-owned enterprises generally get higher cover	Udyam-registered micro and small enterprises in manufacturing, trading, and services	Through your bank or NBFC, which applies for the guarantee. Ask if they cover your loan (cgtmse.in)
MSME-TEAM (ONDC onboarding support)	Support for micro and small enterprises to sell on ONDC: catalogue creation, packaging, logistics, and account management. Valid 2024 to 2027, with priority to women-owned enterprises	Micro and small enterprises that want online sales	Ministry of MSME and ONDC seller apps; check official guidance
SHE-Marts (Budget 2026-27)	Community-owned retail outlets for women entrepreneurs, building on Lakhpati Didi	Women entrepreneurs linked to self-help groups, mostly rural	Through state rural livelihood missions; ask your district office about rollout
Public procurement policy	Not a loan: central ministries and public sector units must buy at least 3% of annual procurement from women-owned enterprises	Women-owned micro and small enterprises supplying goods or services	Register on the Government e-Marketplace (GeM)

More Schemes You Can Explore

The schemes below are offered by some banks and states. Their terms and availability change, so they may or may not be available when you apply. Ask your bank or the state office before you plan around them.

SBI Stree Shakti Package: an interest concession for women-owned businesses. Ask your nearest SBI branch.
Annapurna Scheme: small loans for food catering and tiffin businesses. Ask SBI and other banks.
Udyogini (Karnataka): subsidised bank loans for women in Karnataka through the Karnataka State Women’s Development Corporation (kswdc.karnataka.gov.in).

✅ Key Takeaways

Women often get better terms. Higher subsidy under PMEGP, higher guarantee cover under CGTMSE, and interest concessions at some banks.
Build a repayment record. Mudra works in stages, from Shishu to Kishor to Tarun to Tarun Plus, and a clean record opens the next level.
Funding is only half the picture. ONDC support, SHE-Marts, and public procurement help women-owned businesses reach customers.
Application essentials: Aadhaar, PAN, a simple business plan or project report, quotations for machinery or equipment, proof of business, and bank statements. Many lenders and schemes also ask for Udyam registration.
Always confirm before applying. Scheme limits and rules change, so check the official portal or your bank.

Which Scheme Fits Your Business?

Starting small, under ₹50,000: Mudra Shishu.
Setting up a new business with a larger project: PMEGP if you want a subsidy, or Stand-Up India (check its current status).
No collateral to offer: ask your bank whether your loan can be covered under CGTMSE.
Food business: Mudra, or Annapurna if your bank offers it.
Need customers more than a loan: look at ONDC through MSME-TEAM, SHE-Marts if you are in a self-help group, and public procurement.

How to Apply: 5 Steps

Register your business on Udyam. It is free and many lenders ask for it.
Prepare a simple business plan. Write what you sell, who buys it, how much you need, and how you will repay.
Gather your documents. Keep identity, address, business proof, and bank statements ready.
Apply on the official portal or at your bank branch. PMEGP is applied for online first.
Follow up and keep records. Note every application date and reference number.

Never pay an agent or a stranger to “guarantee” a government loan. Genuine applications are made through banks and official portals.

Why This Matters in 2027

With the rise of digital platforms, women-led businesses in India are expanding beyond traditional sectors. Funding lowers the cost of starting, and new routes such as ONDC, SHE-Marts, and public procurement help women-owned businesses find customers. Together they can reduce entry barriers and support economic empowerment at the grassroots level.

Schemes Removed From the Earlier Version

Mahila Udyam Nidhi Yojana: SIDBI no longer offers it, and it is reported to be available only in limited form through Punjab National Bank.
Bharatiya Mahila Bank business loan: the bank was merged into State Bank of India in 2017. Look at SBI’s women-focused loan products instead.
Annapurna through State Bank of Mysore: that bank also merged into SBI. Ask your bank whether it offers Annapurna now.

Frequently Asked Questions

Is Stand-Up India still available?

The original scheme ran until 31 March 2025. A revamped version was announced in March 2026. Check standupmitra.in or your bank for its current status.

How much can women borrow under Mudra?

Up to ₹20 lakh, in four stages. The top stage, Tarun Plus, is only for borrowers who have repaid a Tarun loan.

Can I get a business loan without collateral?

Often yes. Mudra loans are collateral-free, and CGTMSE lets banks lend without collateral. Ask your bank which applies to you.

Do I need Udyam registration?

Many lenders and schemes ask for it. Registration is online and free.

Can I use more than one scheme?

Some can work together, such as a bank loan with a credit guarantee. Each scheme has its own rules, for example PMEGP is limited to one person per family, so confirm with the bank.

This is general information, not financial advice. Scheme details change, so check the official portal or your bank before applying.

Want to Know Where Your Business Stands Before You Apply?

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